Galantas Gold Corporation
TSX VENTURE : GAL
AIM : GAL

Galantas Gold Corporation

September 04, 2007 11:15 ET

Galantas Raises Pounds Sterling 764,000 (CDN$1.64m) in London Private Placing

TORONTO, ONTARIO--(Marketwire - Sept. 4, 2007) - Galantas Gold Corporation (the Company), (TSX VENTURE:GAL)(AIM:GAL) which has a 100% interest in Ireland's only gold mine, has completed a placing of 7,640,000 units. Each unit is priced at UK Sterling Pounds Sterling 0.10 (approximately CDN$ 0.21) and is comprised of one common share and one half warrant. Each full warrant entitles the holder to purchase one common share within 12 months from closing at a price of UK Sterling Pounds Sterling 0.15 (approximately CDN$0.32). The gross funds raised by the placing are Pounds Sterling 764,000. An arrangement fee of 5% is payable to Lewis Charles Securities, the Company's London broker. The fee is abated to 1% in respect of 1.3m shares placed with the President of the Company.

The placing shares are subject to a 4 month hold period in Ontario, Canada, which will expire January 4th, 2008. An application will be made to admit shares issued under the placing to trading on AIM on the same day that they become free trading on the TSX Venture Exchange.

The Company intends to use the funds to further expand its jewellery business, for general working capital and for continuing exploration and development of the Omagh Gold Project.

Amongst the placees is JP Morgan Fleming Global Natural Resources Fund (JPM). The Company has been advised that this subscription increases JPM's ownership to approximately 9.985 % of the total shares issued and outstanding.

Mr. Roland Phelps (President and Chief Executive of the Company) has subscribed for 1.3 million units in the placing. This increases the total number of shares owned directly and indirectly by him to 32,338,980, which is approximately 18.4% of the current total shares issued and outstanding following the placement. Further detail of his holdings in the Company are listed on www.sedi.ca.

Galantas Gold Corporation Issued and Outstanding Shares following the placing total 175,675,855.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

Contact Information

  • Galantas Gold Corporation
    Jack Gunter P.Eng
    Executive Chairman
    +44 (0) 2882 241100
    or
    Galantas Gold Corporation
    Roland Phelps C.Eng
    President & CEO
    +44 (0) 2882 241100
    Email: info@galantas.com
    Website: www.galantas.com
    or
    ARM Corporate Finance Limited
    Nick Harriss
    +44 (0) 20 7512 0191
    or
    Lewis Charles Securities Limited.
    Kealan Doyle
    +44 (0) 207 456 9100